Financial Data and Key Metrics Changes - Total revenue increased by 13% year over year to $73.7 million, driven by 17% growth in transaction revenue and 14% growth in subscription revenue [7][17] - Adjusted gross margin for the quarter was 41.7%, up from 37.2% in the same quarter last year [7][19] - Adjusted EBITDA for Q2 was $10.7 million, a 26% increase compared to the prior year [7][20] - Net income applicable to common shares for the quarter was $5 million, or $0.07 diluted earnings per share, compared to $3.1 million, or $0.04 diluted earnings per share in the prior period [20] Business Line Data and Key Metrics Changes - Subscription revenue grew by 14% year over year to $20.7 million, while transaction revenue increased by 17% to $44.4 million [17][19] - Equipment revenue decreased by 7% to $8.6 million compared to Q2 FY 2024 [19] - The average revenue per unit (ARPU) for Q2 was $2.00, up 12% from the prior year [18] Market Data and Key Metrics Changes - As of December 31, 2024, the company had over 32,000 active customers and 1.3 million active devices, representing increases of 104% respectively compared to the prior year [18] - The company is expanding its international presence, particularly in Europe and Latin America, with recent wins in micro markets [30] Company Strategy and Development Direction - The company aims to continue expanding operational support internationally and refine its go-to-market strategy across both direct and indirect channels [16] - New product launches, such as the SmartStore series, are designed to address challenges like labor shortages and theft, while expanding into new retail opportunities [13][14] - The company is focusing on enhancing its micro lending services to help customers overcome capital constraints [15][38] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory, particularly in micro markets and smart stores, which are driving higher transaction values [41][52] - The company reaffirmed its fiscal year 2025 guidance, expecting total revenue to be between $308 million and $322 million, representing growth of 15% to 20% [23][24] Other Important Information - The company has recently refinanced and upsized its credit facility to $100 million, providing flexibility for future capital uses [21] - The Cantaloupe Advantage program aims to engage consumers through digital advertising at point-of-sale devices, generating over 1 million impressions in the first ten weeks [16][62] Q&A Session Summary Question: Can you talk about the average revenue per unit and its evolution? - Management noted significant growth in transaction processing and an increase in average ticket size due to product mix shifts [25][26] Question: Any update on your international strategy and business mix? - Management confirmed ongoing international expansion efforts, particularly in Latin America and EMEA, with a current mix of under 5% international revenue [30] Question: How does the new microlending program work? - The company clarified that it does not hold any loans but partners with a trusted provider to facilitate loans for customers [34][35] Question: What are the key growth drivers among product lines? - Growth is driven by micro markets, smart stores, and a shift in product placement to higher-value locations [41][42] Question: Is the current margin level sustainable? - Management expressed confidence that the current margin levels are sustainable due to cost reduction measures and increased average ticket prices [46][47] Question: Can you elaborate on the guidance range for revenue and EBITDA? - The guidance range is primarily driven by larger equipment sales expected in the back half of the year, with a focus on maintaining transaction and subscription revenue growth [66][68]